K-3 Exception Verbiage to Print on K-1

Forum|Forum|3 years ago
January 18, 2023
1 reply
7 views

In December the IRS changed the instructions for both 1065 and 1120S re domestic filing exception (for the K-2 and K-3). All four criteria must be met. Item #3 says if criteria 1 and 2 are satisfied, partners receive notification from the partnership at the latest when the partnership furnishes the K-1 to the partner. The notice can be provided as an attachment to the K-1.... Question - has anyone seen accepted verbiage to write on the K-1?

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JRC

Level 7

Yes.

I found that NATP has a notice suggestion to include with the K1's I found on there website.

There is a timeline which also needs to be met.

M

msmith7305

Level 6

How do you access this? I looked on the website and could not locate it.

dascpaAuthor

Level 11

I accessed it. Saw their suggestion and then modified it to my needs.

Per IRS instructions, this entity qualifies for an exception to filing Forms K-2 (entity) and K-3 (member) [change title as it applies]. If the member would like a K-3 they must request it to the managing member or the CPA by 02/15/2023 (one-month prior to the due date of filing the tax return).

This entire thing sucks. How many returns will be done after 02/15 and before 03/15 or after 08/15 and prior to 09/15? I have no desire to print thousands of wasted pages for no information. Nor do I want 20 page K-1's. I'm already attaching a million notes and now basis schedules, QBI schedules, etc. Every K-1 is a book.

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